NorthWest International Healthcare Properties REIT Announces $98M Acquisition of 16 German Medical Office Buildings and Rebalancing of Existing German Portfolio

TSX-V: MOB.UN

TORONTO, Feb. 18, 2014 /CNW/ - NorthWest International Healthcare Properties Real Estate Investment Trust (TSXV: MOB.UN) (the "REIT") announced today that it has entered into agreements to acquire 16 German medical office buildings in two separate transactions (the "German MOB Portfolio") located in the major markets of Berlin, Ingolstadt and Leipzig. The acquisition more than doubles the size of the REIT's existing German portfolio and solidifies its position as a leading owner of healthcare real estate in the country.

At approximately 500,000 square feet, the German MOB Portfolio is 96.0% occupied with a weighted average lease expiry of 7.0 years. The purchase price of approximately C$98M (EUR 65M) represents an approximate 8.0% stabilized cap rate.

The REIT's investment will be funded from existing resources and new mortgage facilities aggregating approximately C$64M (EUR 43M). These facilities will have a weighted average interest rate of approximately 3.0%, a weighted average term of approximately 10 years and a weighted average amortization period of approximately 30 years. The acquisitions are expected to close on or before March 31, 2014, subject to customary closing conditions including incremental leasing of 15,156 sqft., and are expected to be immediately accretive.

Separately, the REIT has sold its leasehold interest in a building located in Marktredwitz for approximately C$7M (EUR 5M), representing a 6.25% cap rate. The property was non-core to the REIT's German portfolio and was sold pursuant to a pre-emptive right in favour of the local municipality and owner of the ground lease. The net proceeds from the disposition will be reinvested as part of the German MOB Portfolio acquisition.

Additional details on the REIT and other recent developments are available on the REIT's website at www.nwireit.com.

About NorthWest International Healthcare Properties Real Estate Investment Trust

The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT's objectives are to: (i) provide its unitholders with stable and growing cash distributions from investments focused on international healthcare properties, on a tax efficient basis; (ii) enhance the value of the REIT's assets and maximize long-term unit value; and (iii) expand the asset base of the REIT.

Reader Advisory

This news release contains "forward-looking statements" within the meaning of applicable securities laws, including statements regarding: the initial cap rate of the acquisition; the impact of the acquisition on the REIT's AFFO and AFFO per Unit; the intentions of the REIT with respect to the financing of the acquisition; and the expected pricing of such financing. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the risk that: the acquisition does not close as expected; financing for the acquisition is not available on the terms contemplated or at all; and foreign exchange rates remain constant. A discussion of other risk factors applicable to the REIT is contained under the heading "Risk Factors" in the short-form prospectus of the REIT dated December 12, 2013, the REIT's annual information form dated March 11, 2013 and audited consolidated financial statements and management's discussion and analysis ("MD&A") for the year ended December 31, 2012, copies of which may be obtained on the SEDAR website at www.sedar.com. The statements in this news release are made as of the date of this release. The REIT does not intend to, and the REIT disclaims any obligation to, update any forward looking information, whether written or oral, or whether as a result of new information, future events or otherwise, except as required by law. Although the REIT believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein.

Certain terms used in this press release, such as NOI, AFFO and cap rate, are not measures defined under International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS. NOI, AFFO and cap rate, as presented, may not be comparable to similar measures presented by other issuers. AFFO should not be construed as an alternative to net earnings or cash flow from operating activities as determined by IFRS. The REIT believes that AFFO is useful in the assessment of its operating performance and that this measure is also useful for valuation purposes and is a relevant and meaningful measure of its ability to earn and distribute cash to unitholders. Examples of reconciliations of AFFO to the most directly comparable measure calculated in accordance with IFRS are provided in the MD&As of the REIT for the three and nine months ended September 30, 2013 and year ending December 31, 2012.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) has approved or disapproved the contents of this press release.

SOURCE: NorthWest International Healthcare Properties Real Estate Investment Trust

Paul Dalla Lana 
CEO, NorthWest International Healthcare Properties REIT 
[phone] ext. 1001

Teresa Neto 
CFO, NorthWest International Healthcare Properties REIT 
[phone] ext. 1002